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I tested it and found that Ancestral Awakening double-dips on healing reductions such as mortal strike effects and arena/BG healing reduction too.
Is this intended?
I also found that it heals for 29.7% of the heal that it procced off of while there are no healing reduction effects present.
I'd day double reduction is correct. It uses value of heal that landed in target. If target was under mortal strike, you get reduced initial heal. And when base heal heal halved, talent proc becomes twice less powerful, after which it will be affected by mortal strike moment it lands